EDP Renewables Accelerates Development of Two Hybrid Projects Involving 3400 MWh of BESS In Australia

EDP Renewables (EDPR), the clean energy subsidiary of Portugal’s EDP Group, has announced plans to fast-track the development of its Punchs Creek Renewable Energy Project in Queensland and Merino Hybrid Project in New South Wales. Both developments are expected to come online before 2030, aligning with Australia’s national renewable energy goals.

Large-Scale Solar and Storage Projects

The Punchs Creek project, located near Toowoomba in southern Queensland, will feature a 400 MW solar photovoltaic (PV) facility co-located with a 400 MW / 1,600 MWh battery energy storage system (BESS). Meanwhile, the Merino project, to be built near Goulburn in southern New South Wales, will integrate a 450 MW solar installation with a 450 MW / 1,800 MWh battery system.

According to EDPR, the Punchs Creek project is slated to reach financial close in 2026, with commissioning expected in early 2029. The Merino project is targeted to achieve ready-to-build status in the second half of 2026.

Support Under the Capacity Investment Scheme

Both projects were among 20 renewable developments selected under the Australian federal government’s latest Capacity Investment Scheme (CIS) tender. The CIS provides a revenue underwriting mechanism that cushions developers against market price volatility - offering support if revenues dip below an agreed floor and requiring revenue sharing if earnings exceed a set cap.

EDPR Australia Country Director Simon Franklin insisted that the scheme provides “vital support” for accelerating new renewable capacity in the National Electricity Market.
Economic and Community Impact

Once operational, the Punchs Creek and Merino projects will collectively host around 1.5 million solar panels spanning 1,600 hectares. Together, they are expected to generate about 2.2 terawatt-hours (TWh) of clean electricity annually - enough to power roughly 380,000 Australian homes during peak demand periods.

Construction of the two hybrid projects is projected to create more than 1,600 local jobs, stimulating regional economies and supporting local businesses and service providers.

Expanding EDPR’s Australian Portfolio

The Punchs Creek and Merino developments form part of EDPR Australia’s growing 4 GW pipeline, which includes over 30 town-scale and large-scale solar and battery projects nationwide. The company described Australia as a key market with strong fundamentals for renewables and emphasised its strategic focus on hybrid projects combining solar, wind, and energy storage technologies.

EDPR aims to deploy more than 2 GW of new renewable capacity across Australia by 2030 as part of its broader global expansion strategy in clean energy.